Brent Steady as Investors Proceed with Caution

Brent Crude Oil traded steadily below $112 on Wednesday morning as investors proceeded with caution ahead of several upcoming indicators of the global economy's health. The commodity was trading at $111.84.

The biggest driver of Brent prices has been the question of whether or not supply will outpace demand in 2013. Investors are eyeing the US, China and Europe for clues about the economy's condition in the coming months.

On Thursday, China will release its trade data, an important indicator of the energy consuming giant's economic health. Lackluster data from China early in 2012 suggested the nation was slowing down; but at the close of the year, economic data showed signs the economy was picking up. The trade data, coupled with fourth quarter growth information to be released on January 18th will be a major driver for Brent prices.

Also on Thursday, the European Central Bank and the Bank of England will hold their policy meetings. While the ECB meeting is expected to result in no change to the current interest rate, investors will be watching for clues about whether the bank is considering lowering the rate later in 2013.